RBC to price contingent coupon callable yield notes linked to indexes

By Angela McDaniels

Tacoma, Wash., Aug. 5 – Royal Bank of Canada plans to price contingent coupon callable yield notes due March 2, 2016 linked to the worst performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each index closes at or above its barrier level, 75% of its initial level, on the observation date for that quarter. The contingent coupon rate is expected to be at least 8.5% per year and will be set at pricing.

The payout at maturity will be par unless any index finishes below its barrier level, in which case investors will be fully exposed to the decline of the worst-performing index.

The notes will be callable at par on any interest payment date.

RBC Capital Markets, LLC and Barclays are the agents.

The notes are expected to price Aug. 26 and settle Aug. 29.

The Cusip number is 78010UR74.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.